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What is the relationship between price and the quantity demand?
Wiki User
∙ 12y ago
The relationship between price and quantity demanded is known as the demand relationship.
A. The Law of Demand
The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. In other words, the higher the price, the lower the quantity demanded. The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good. As a result, people will naturally avoid buying a product that will force them to forgo the consumption of something else they value more. The chart below shows that the curve is a downward slope.
Wiki User
∙ 10y ago
Wiki User
∙ 12y agoIf all other factors remain the same, as price of a good goes up, demand will go down.
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What is the difference between a demand schedule and a demand curve?
a demand schedule is a table showing the relationship between the price of a good and the quantity demanded , but a demand curve is a graph showing the relationship between the price of a good and the quantity demanded.
What are the reasons for negative relationship between price and quantity demanded?
Price and demand have an inverse relationship. Therefore, if the price goes up, the demand goes down; the price goes down, the demand goes up.
What kind of relationship does the demand curve have in relation to supply?
Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer.
What is the relationship between the price of an item and the quantity demanded?
It is a direct relationship. As demand for an item rises, all else equal, price for an item will rise.
How is the law of demand illustrated by a demand schedule and a demand curve?
increase in its price and decreases with decrease in its price, other things remaining constant
What is the difference between a demand schedule and a demand curve?
a demand schedule is a table showing the relationship between the price of a good and the quantity demanded , but a demand curve is a graph showing the relationship between the price of a good and the quantity demanded.
Term for relationship between price and quantity supplied?
Demand Curve
What are the reasons for negative relationship between price and quantity demanded?
Price and demand have an inverse relationship. Therefore, if the price goes up, the demand goes down; the price goes down, the demand goes up.
What kind of relationship does the demand curve have in relation to supply?
Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer.
What curve shows the relationship between the sales price and quantity is called the demand curve?
supply
What is the relationship between the price of an item and the quantity demanded?
It is a direct relationship. As demand for an item rises, all else equal, price for an item will rise.
How is the law of demand illustrated by a demand schedule and a demand curve?
increase in its price and decreases with decrease in its price, other things remaining constant
The relationship between the price of a good or service and the quantity that consumers are willing to purchase is known as?
Demand is the best answer
What is behind the demand curve?
Law of demand is behind the downward sloping of demand curve,i.e. inverse relationship between price and quantity demanded.
Why demand curve slopes downward?
Demand curve is slope downward because of inverse relationship between price and quantity.
What are the different types of demand in economics?
what is demand curve is a graphic representation of the relationship between product price and the quantity of the product demanded. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis
What is a demand equation?
The demand equation refers to the mathematical expression of the relationship between the quantity demanded and price. The quantity that is demanded is usually denoted by letter Q while the function of the price is usually denoted by letter P.
